Sometimes changes in stock prices are recorded as percentages, other times as returns. The difference is a factor of 100: Percentage changes are 100 times the returns. How does this choice affect the estimated value for β1 in a regression of the change in one stock on the change in the entire market? What about β0 in such a regression?
Answer to relevant QuestionsIn the regression of production time on number of units, how would the following statistics change had the response variable been expressed in hours rather than minutes? (a) b0 (b) b1 (c) se (d) t-statistic for b1 Before purchasing videoconferencing equipment, a company ran tests of its current internal computer network. The goal of the tests was to measure how rapidly data moved through the network given the current demand on the ...A firm that operates a large, direct-to-consumer sales force would like to put in place a system to monitor the progress of new agents. A key task for agents is to open new accounts; an account is a new customer to the ...1. Because residuals represent the net effects of many other factors, it is rare to find a group of residuals from a simple regression that is normally distributed. 2. The nearly normal condition is critical when using ...Supervisors of an assembly line track the output of the plant. One tool that they use is a simple regression of the count of packages shipped each day versus the number of employees who were active on the assembly line ...
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